Democrats Aim for a Trillion in New Taxes

Democrats are looking to raise up to up to trillion dollars though tax reform efforts this year, a move The Hill newspaper reports is aimed at balancing Republican demands for deeper spending cuts in mandatory programs.

According to the Capitol Hill paper, Democrats have not yet drafted any reform legislation, but appear to be headed toward a "consensus . . . that the next installment of deficit reduction should reach $2 trillion and half of it should come from higher taxes."

The White House also supports a one-to-one ratio of spending cuts to new tax increases.

Republicans, however, are making it clear they plan to fight additional tax increases, saying that any efforts at tax reform must be revenue neutral.

Kentucky Republican Sen. Mitch McConnell, the Senate minority leader, made that point clear on Sunday during an appearance on NBC's "Meet the Press."

“I'm in favor of doing tax reform but I think tax reform ought to be revenue neutral as it was back during the Reagan years," McConnell said. "We've resolved this issue. Look, we don't have this problem because we tax too little. We have it because we spend way, way too much."